Oil prices extended gains for a third session on Monday, with Brent rising above $81 a barrel to its highest level in more than four months. Broader US sanctions are expected to hit Russian crude exports to China and India.

Brent crude futures rose $1.47, or 1.84%, to $81.23 a barrel by 0503 GMT after reaching a daily high of $81.49, the highest since Aug. 27.

WTI rose $1.55, or 2.02%, to $78.12 a barrel after reaching a peak of $78.39, the highest since Oct. 8.

Brent and WTI have both gained more than 6% since Jan. 8.

The new sanctions include producers Gazprom Neft, and Surgutneftegas, as well as 183 ships carrying Russian oil. The sanctions target revenues believed to be used to finance Moscow’s war with Ukraine.

Traders and analysts said Russian oil exports would be hit hard by the new sanctions. This would prompt China and India, the world’s largest and third-largest oil importers, to source more crude from the Middle East, Africa, and the Americas, pushing up shipping costs and prices.

Friday’s announcement reinforces the view that risks to the $70-$85 Brent range are on the upside in the near term. The ships targeted by the new sanctions are estimated to carry 1.7 million barrels per day of oil in 2024, or 25% of Russia’s exports, the vast majority of which are crude.

Expectations of tighter supplies have also pushed Brent and WTI monthly spreads to their widest backwardation since the third quarter of 2024. Prompt prices are higher than those in future months in backwardation, indicating tight supply.

Doubling the number of tankers sanctioned for carrying Russian products would pose a major logistical hurdle to crude flows.

Meanwhile, Russia has room to maneuver despite the new sanctions but will need to buy tankers that are not sanctioned or offer crude at $60 per barrel or below.